St. Lawrence County fund balance dip could lead to hefty tax hike

CANTON  St. Lawrence Countys fund balance could dip to under $1 million by the end of the year, which could mean more borrowing, a hefty tax increase and concessions from employees in the future.

Weve had opportunities to do things, but we dont have the stomach to do it, Legislator Alex A. MacKinnon, R-Fowler, said at a meeting of the Board of Legislators Finance Committee Monday. We can work our way out of it if were careful. Pressure makes a big difference and were at that point.

In a report on 2011 year-end figures, Treasurer Kevin M. Felt reported the fund balance at the end of last year at $7.8 million. Nearly $3 million of that amount comes from tribal compact funds, which were budgeted but have not been received because of a dispute over gaming exclusivity between the state and the St. Regis Mohawk Tribe. Legislators had already committed $4 million of the remaining amount to help reduce this years tax levy.

The longer we continue to lose $4 million before we do something collectively as a group, the more drastically well have to act, Legislator Mark H. Akins, R-Lisbon, said.

County Administrator Karen M. St. Hilaire said an official of Empire State Development told her a discussion would soon take place with the governors office on the compact money, but Legislator Vernon D. Sam Burns, D-Ogdensburg, also suggested a face-to-face meeting with state representatives to explain the importance of the revenue to the county.

In 2007, the countys fund balance stood at more than $22 million. At the end of 2010, it was $12.3 million.

Last year was rough for the county. It was hit by $3.8 million in unexpected costs in Public Health, which included back billing by St. Lawrence-Lewis Board of Cooperative Educational Services for preschool expenses and unanticipated costs in its Certified Home Health Agency.

One bright spot was a legal victory against the state Department of Health that brought the county Department of Social Services approximately $1.5 million in contested reimbursements.

The county cannot expect that windfall again, Mr. Akins said.

Were also not going to get pre-k back-billing that hits us for $2 million, Legislator Frederick S. Morrill, D-DeKalb Junction, said.

To deal with last years cash flow crunch, legislators authorized borrowing of up to $8,5 million.

While the county will be able to pay back the money, it will likely have to borrow again later in the year.

We had to borrow last summer, Mr. Felt said. Our fund balance is lower than it was.

Mr. MacKinnon said legislators will have to be strong when it comes time to settle labor contracts with its unions.

The key to our success for the next few years will be how we settle these contracts, he said.

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